U.S. Ratchets Up Pressure on Guatemala to Enforce Labor Laws

by James Parks, Aug 10, 2011

The U.S. government is seeking arbitration against Guatemala for failing to enforce its own labor laws.

The Obama administration is ratcheting up the pressure on Guatemala to enforce its labor laws. Yesterday, the Office of the U.S. Trade Representative (USTR) announced it was moving forward with arbitration against Guatemala for violating fundamental labor rights under the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA).

Arbitration would be the third step in the process outlined under the DR-CAFTA, to compel a nation to enforce its labor obligations under the agreement. Last May, the United States requested a meeting of the Free Trade Commission—which includes ministers of the member countries—when consultations failed to resolve the dispute. The commission met last June.

AFL-CIO President Richard Trumka applauds the decision, saying it protects workers’ safety and voices. Read his full statement here.

[The] announcement is an important milestone in the effort to enforce the obligations made in trade agreements and protect the rights of workers in the U.S. and overseas.

In 2008, the AFL-CIO and six Guatemalan unions filed a complaint with the Labor Department outlining the systemic failure of the government of Guatemala to enforce its own labor laws or to take reasonable action to prevent violence against trade unionists.

In 2009, the International Trade Union Confederation (ITUC) named Guatemala the second most dangerous country for trade unionists, behind Colombia. Click here to read a Solidarity Center report on workers’ rights in Guatemala.

U.S. Trade Representative Ron Kirk says, “We need to see concrete actions to protect the rights of workers as agreed under our trade agreement, and we are prepared to act to obtain enforcement of those rights when and where necessary.”

Secretary of Labor Hilda Solis adds:

This is the first labor case brought to dispute settlement by the United States under a free trade agreement. We are committed to ensuring that U.S. businesses and workers compete on a level playing field.

The Obama administration announced the action as it is gearing up to seek approval of the three pending free trade agreements with Korea, Colombia and Panama when Congress returns from the August recess. The three pending agreements all contain improved labor and environmental provisions, but those provisions still are not as strong as workers in the countries would like. The AFL-CIO recently reaffirmed its opposition to the Colombia deal.

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Congress Must Vote "No" on Panama Trade Deal

Wed. August 10, 2011

The Panama Free Trade Agreement is one of three pending Bush-negotiated free trade agreements (FTAs) lawmakers are now trying to ram through to final passage.

But Congress must vote “No” on the bad trade deal.

Panama is one of the world’s worst tax havens, allowing the rich and an estimated 400,000 corporations, including many U.S. firms, to dodge paying taxes our communities so desperately need. The country has consistently been criticized by tax and financial crime transparency watchdogs like the Organisation for Economic Co-operation and Development (OECD). Panamanian workers continue to face steep obstacles when it comes to exercising their fundamental rights. And according to the State Department, Panama is a main site of drug money laundering by Mexican and Colombian drug kingpins.

Click here to see the real truth behind this financial crime center.

“Not only does the Panama FTA not resolve these problems, it will make them worse,” explains IAM International President Tom Buffenbarger. “Under the trade deal, corporations registered in Panama would be newly empowered to directly challenge future U.S. anti-tax haven policies. And just like all other trade deals modeled after the failed North American Free Trade Agreement, claims of any real job creation are a complete and total fallacy. This will cost America more jobs and further undermine our country’s ability to pull itself out of economic turmoil.”

Congress must reject the seriously-flawed Panama FTA. Click “Like” on the IAM Facebook page to support fair trade, not free trade!